Vinh Phuc Industrial Zones: Magnet for Investors

1:46:58 PM | 10/20/2023

Vinh Phuc industrial zones (IZs) have become attractive destinations for investors, thanks to their favorable geographical location, well-developed infrastructure and supportive policies from the provincial authorities.

Ba Thien II Industrial Park is attractive to investors thanks to its synchronous and modern infrastructure

Vinh Phuc has planned 19 industrial zones, of which 16 have been licensed, covering a total area of 3,156.96 ha. These IZs are strategically located along national highways, enhancing their competitiveness and accessibility. The developers have invested in building modern and synchronous infrastructure in the IZs, attracting secondary investors with advanced technologies, clean energy and environmental protection.

Thang Long Vinh Phuc Industrial Zone, which covers 213 ha, was constructed in September 2017 and inaugurated the first phase with 100 ha in November 2018. The investor, a joint venture between Thang Long Industrial Zone Co., Ltd. and Sumitomo Corporation of Japan, has applied its experience and expertise to create a high-quality IZ. The IZ features modern and advanced transportation systems, power stations and wastewater treatment facilities which appeal to many investors, even demanding ones. After five years of operation, Thang Long Vinh Phuc Industrial Zone has attracted 32 tenants, occupying 82% of the rentable area. The investor has committed to completing the entire technical infrastructure by the end of 2024 and hosting 80 Japanese tenants, producing automobile and motorbike engines and components, electronic accessories and precision mechanical products.

Another prominent IZ in Vinh Phuc is Ba Thien II Industrial Zone, which has a competitive edge not only from its geographical location, but also from its synchronized infrastructure and modern technology. The internal traffic system is concreted to minimize the road surface upgrading and repair by tenants when they build factories. The water supply and drainage system is underground, below the road corridor, to ensure safety and hygiene for vehicles and workers moving in the IZ. The IZ also has a modern operating area, equipped with various amenities and services for manufacturing factories; green, clean and eco-friendly spaces; and a state-of-the-art wastewater treatment system with a daily capacity of 10,000 cubic meters according to international standards. An official from the operator of Ba Thien II Industrial Zone said: By focusing on the modern, green and sustainable approach, Ba Thien II Industrial Zone has successfully attracted investors from the U.S., South Korea, Singapore, Sweden and other countries. Up to now, Ba Thien II has attracted 73 projects from secondary investors with a total investment capital of over US$900 million and created over 23,000 stable jobs. Major tenants in Ba Thien II include TAL Vietnam, Nippon Paint Vinh Phuc, Weldex Vina, Assa Abloy and Polaris.

Vinh Phuc IZs have attracted many large investors, thanks to their well-developed and modern infrastructure. In the first eight months of 2023, they received 17 new FDI projects and 28 existing FDI projects, with a total investment of US$445.53 million, which is 171% of the amount in the same period of 2022 and 127% of the full-year plan in 2023. They also welcomed 9 new DDI projects and four existing DDI projects, with a total investment of VND5,681.3 billion, which is 160% higher than a year-ago period and 89% higher than the full-year target. As of August 15, Vinh Phuc industrial zones had 467 valid projects, including 106 DDI projects with VND32,254.25 billion of investment capital and 361 FDI projects with US$6.25 billion of investment capital. Among them, 403 projects are in production, accounting for 86.3% of total projects.

Vinh Phuc will continue to improve its planning, and urge investors and relevant agencies to speed up the progress of land compensation, site clearance and investment and construction procedures for new industrial zones as approved. The province will closely monitor infrastructure investors in terms of capacity and progress; and propose infrastructure upgrading outside industrial zones. In line with its sustainable development strategy, Vinh Phuc province is also accelerating the adjustment and planning of smart eco-industrial zones, gradually building and forming model industrial zones to attract investors with environmentally friendly and high-value-added projects.

By Nguyet Tham, Vietnam Business Forum